Instead of Surges, Lyft Now Offers Riders Happy Hour Pricing

Lyft is a ridesharing app that connects available drivers with those in need of a ride. Instead of having to call a taxi, riders are able to request a ride from their smartphone.

This San Francisco-based startup just announced that they will be doing Happy Hour. This feature that will offer Lyft passengers a 10% to 50% discount on standard ride costs during times when demand for drivers is low.

While along with their competitors Uber and Sidecar, they did use surge pricing when demand is high, such as New Year’s Eve or 4th of July. However, Lyft is the first one to offer discounted prices.

“I think it’s a major advantage,” says Zimmer, who also said Lyft surge pricing never exceeds 200% the standard rate. “We want to make that both when you really need a ride and when it’s slower, we have the most affordable option for you.”

Happy Hour lowers fares for drivers, but Lyft thinks that lower prices will boost demand during the slow times. In its blog post, it notes that a driver who normally sees one ride per hour at $12 might see two or more at $9.

One negative to Happy Hour is that drivers will earn less money with cheaper fares. But Zimmer says that increasing ride totals should outweigh that issue.

“We’re trying to maximize driver hourly earnings at the lowest cost,” he explains.